Frequently asked questions

Answers to 10 of the most common questions about financing a home with a VHFA mortgage loan.

1. Who is VHFA and how can they help me?

Vermont Housing Finance Agency (VHFA) is a not-for-profit organization that has been assisting Vermonters since 1974. VHFA mortgage programs are available through VHFA Participating Lenders throughout the state to meet the needs of low-to-moderate-income Vermonters.

2. How do I apply for a VHFA home loan?

To apply, you must contact a VHFA Participating Lender. Only a VHFA Participating Lender can pre-qualify you and accept your loan application. VHFA does not accept applications directly from potential borrowers. Learn more at How Do I Start?

3. Do all VHFA Participating Lenders offer the same programs at the same terms?

Not all Participating Lenders offer all VHFA programs. However, the VHFA programs offered by each Participating Lender have the same terms and requirements.

4. What if my lender is not on the Participating Lender List?

5. Am I required to be a Vermont resident to apply for a VHFA loan?

No, but you must buy a home that is in Vermont and occupy it as your primary residence.

6. Do I have to be a first-time home buyer?

Not necessarily. VHFA has loan programs available for first-time homebuyers and previous homeowners. If you are a current homeowner, you will be required to sell your current residence prior to receiving VHFA financing to purchase a new home.

7. Do I need a down payment for a VHFA loan?

Not always. VHFA offers mortgage programs that may allow up to 100% financing.

8. Can VHFA help with down payment and closing costs?

Yes. For eligible borrowers, VHFA offers the ASSIST Program. The ASSIST Program is a 0% second mortgage that provides up to $5,000 for closing costs and down payment. An ASSIST loan can only be combined with any VHFA first mortgage program.

9. Are there income and purchase price limits?

10. What types of properties are eligible?

VHFA programs are limited to the purchase of a primary residence. Property types include new or existing single-family homes, eligible condominiums and existing two-unit homes. Some restrictions apply based on the loan program. Your Participating Lender will determine the eligibility of the property. Manufactured homes and properties 15 acres or more are not eligible.